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Commercial Boiler Market Size By Fuel (Natural Gas, Oil, Coal, Electric), By Capacity, By Technology (Condensing, Non-Condensing), By Product (Hot Water, Steam), Application & Forecast, 2023 - 2032
- Report ID: GMI2809
- Published Date: Feb 2023
- Report Format: PDF
Industry Statistics
Commercial Boiler Market size exceeded USD 12 billion in 2022 and is projected to expand at more than 7% CAGR from 2023 to 2032, driven by the tightening regulatory scenario around global carbon emissions.
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Carbon emissions-curbing regulations put in place by regional and federal governments across the globe have bolstered the demand for more efficient commercial boilers, shaping the industry outlook in a prominent manner. The regulations are also accompanied by favorable support policies that make the shift to low carbon energy more financially viable. In December 2022, the US government unveiled a USD 3.7 billion investment in the country’s CO2 removal industry. Meanwhile, earlier in March 2022, the UK government had announced a £288 million (USD 347 million) fund for green heating projects to minimize the country’s carbon footprint. Global gas fired boiler industry is poised to cross USD 105.9 billion by 2032.
Increasing adoption of green construction practices is also likely to outline industry expansion through 2032. As per reliable estimates, almost 50% of a building’s energy consumption is dedicated towards space and water heating, which contributes over 2450 Mt of direct CO2 emissions worldwide.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | 12.4 billion (USD) |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 7.2% |
| 2032 Value Projection: | 24.8 billion (USD) |
| Historical Data for: | 2019 to 2022 |
| No. of Pages: | 1,060 |
| Tables, Charts & Figures: | 1,882 |
| Segments covered: | U.S., Canada, Mexico, France, UK, Poland, Italy, Spain, Austria, Germany, Sweden, Russia, China, India, Philippines, Japan, South Korea, Australia, Indonesia, Saudi Arabia, Iran, UAE, Nigeria, South Africa, Argentina, Chile, Brazil Fuel, Capacity, Technology, Product, Application |
| Growth Drivers: | |
| Pitfalls & Challenges: |
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High initial investments associated with commercial boilers may impede industry development
The high initial investments associated with commercial boilers, owing to their costly nature and high installation as well as labor costs, may restrain industry growth. Commercial boilers cannot be easily replaced or repaired, and the downtime caused by a damaged boiler can prove very expensive. Despite their advertised energy efficiency, high electricity expenses in many nations make commercial boilers a non-viable heating option. In such settings, many consumers turn to coal-fired industrial boilers with immense emission rates, hindering business development further.
Energy-efficiency of commercial oil-fired boilers to drive fuel segment growth
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In terms of fuel, the oil segment held over 20% of the global commercial boiler market share in 2022. This growth is attributed to the all-round availability of the resource throughout the globe and its relatively energy efficient nature. Oil-fired boilers also present customers the ability to use renewable fuels for heating purposes. Several companies are now providing heating oil blended with biodiesel to help reduce a region’s dependency on foreign oil while also leveraging a locally available energy source. Such boilers incur a low running cost than even electric boilers.
Many industry players are also capitalizing on the supportive policies introduced by governments to grow the consumer base for their oil-fired commercial boilers, shaping the segment outlook.
Tightening building codes and standards to impel hot water product segment growth
In terms of product, the commercial boiler market from the hot water segment is expected to witness nearly 10% CAGR between 2023 and 2032, fueled by tightening building codes and standards that call for more energy efficient heating solutions. Recently, in March 2022, the US DOE introduced new building energy code requirements for Federal buildings to cut down energy use and electrify appliances and equipment in 30% of Federal government-owned building spaces by 2030.
These new building codes are also creating a notable impetus for the substitution of conventional heating systems to meet new energy efficiency provisions and LEED certification guidelines.
Rising demand for space heating across North America
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North America commercial boiler market valuation is anticipated to surpass over USD 4 billion by 2032, spurred by the region’s increasing construction spending. Recently, in November 2022, the Canadian government announced an investment of more than CAD 2 million (USD 1.4 million) towards energy-efficient residential building projects in Ontario. The extreme weather conditions in the region ensure a steady demand for commercial-grade energy efficient heating solutions, making it an ideal revenue pocket for the market. The market size Boiler in the U.S. is poised to cross USD 5.7 billion revenue by 2032.
As per a September 2022 report published by US EPA, space heating is responsible for more than 42% of the overall energy consumption in US homes and approximately 36% in the country’s commercial spaces. The market size of boiler in Europe is poised to surpass USD 99.5 billion by 2032.
Mergers and acquisitions to define the competitive landscape for commercial boiler market
Some leading commercial boiler suppliers include Bosch Industriekessel, Thermal Solutions, PB HEAT, Slant/Fin Corporation, Weil-McLain, Columbia Boiler Company, PARKER BOILER, A.O. Smith, and Bradford White Corporation, among others. Many of these firms are prioritizing mergers and acquisitions to consolidate their industry presence. Recently, in January 2023, Babcock Wanson, a UK-based supplier of industrial boilers, announced the acquisition of Parat, a leader in high-voltage boilers, and PBS Power Equipment, a prominent boiler manufacturer based out of Europe.
This strategic move helped the company expand its customer base and capture a high market share while increasing its expertise.
Impact of COVID-19 on industry trends
The COVID-19 pandemic asserted a negative impact on the global commercial boiler market on account of the closure of offices, educational institutions, hotels, and other spaces; places where commercial-grade boilers are primarily used. Additionally, the unprecedented supply chain issues hampered industry growth in the immediate aftermath of the pandemic by delaying the sector’s return to normalcy.
However, tight regulations around emissions and favorable government policies for green buildings are creating new growth avenues for the market today. For instance, in May 2022, the UK government outlined an investment of over £553 million (USD 665 million) for affordable, energy-efficient, and low-carbon heating upgrades for public buildings.
The commercial boiler market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in “USD Million” from 2019 to 2032, for the following segments:
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Market Insights, By Fuel
- Natural Gas
- Oil
- Coal
- Electric
- Others
Market Insights, By Capacity
- ≤ 0.3 - 2.5 MMBtu/hr
- > 2.5 - 10 MMBtu/hr
- > 10 - 50 MMBtu/hr
- > 50 - 100 MMBtu/hr
- > 100 - 250 MMBtu/hr
Market Insights, By Technology
- Condensing
- Non-Condensing
Market Insights, By Product
- Hot Water
- Steam
Market Insights, By Application
- Offices
- Healthcare Facilities
- Educational Institutions
- Lodgings
- Retail Stores
- Others
The above information has been provided for the following regions and country:
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- UK
- Poland
- Italy
- Spain
- Austria
- Germany
- Sweden
- Russia
- Asia Pacific
- China
- India
- Philippines
- Japan
- South Korea
- Australia
- Indonesia
- Middle East & Africa
- Saudi Arabia
- Iran
- UAE
- Nigeria
- South Africa
- Latin America
- Argentina
- Chile
- Brazil